Key takeaways:
- Starbucks will close approximately 250 North America locations this week, about 1% of its more than 18,000 locations in the region.
- The company says the closures target coffeehouses where it is falling short on delivering customer experience or financial performance.
- The closures come as Starbucks reports four consecutive quarters of comparable store sales growth and has outlined plans to open hundreds of net-new U.S. locations in coming years.
Starbucks will close roughly 250 locations across North America this week, the company announced in a message to employees posted to its corporate news blog.
“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” wrote Starbucks Chief Operating Officer Mike Grams in the memo to employees.
Grams said the decision is part of the company’s routine portfolio management rather than a signal of broader trouble. “Every year we close some coffeehouses and open others as part of managing our portfolio,” he wrote. “And as we shared previously, we remain excited about the significant long-term growth opportunity ahead in North America.”
He acknowledged the toll the closures will take on employees and communities. “Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected,” Grams wrote. The closures represent about 1% of the company’s more than 18,000 North America locations.
Starbucks said it’s working directly with affected employees to find new roles within the company. “We’re speaking directly with impacted partners and will support them through this transition, including transfer opportunities wherever possible,” Grams wrote. “For partners we are unable to place in another coffeehouse, we will provide severance support.”
Starbucks’ Growth Plans
The closures follow a broader restructuring effort the company disclosed last year. Starbucks announced in September 2025 that it would shrink its North America store count by 1% as the Seattle-based company also implemented a long-term growth strategy.
At its 2026 investor day, Starbucks executives said the company plans to open approximately 400 net-new coffeehouses in the United States in fiscal year 2028, and has identified 5,000 additional coffeehouse opportunities across the country beyond that.
The company’s international ambitions are even larger. Starbucks executives said the company sees the potential to nearly double its international footprint over time, approaching 40,000 non-U.S. locations, largely driven by opening 15,000 to 20,000 new coffeehouses in China. Starbucks completed a joint venture with Boyu Capital in April, shifting its China retail operations to a licensed model while retaining a 40% stake.
“The role of our international business is very clear,” said Brady Brewer, CEO of Starbucks International. “We are an asset-light growth driver for Starbucks that increases Starbucks margins.”
Starbucks also relaunched its loyalty program in March, introducing a three-tiered structure called Green, Gold and Reserve for the program’s 35.5 million members, according to Retail TouchPoints.
Starbucks’ Recent Performance
The closures come as Starbucks touts sustained sales momentum under its “Back to Starbucks” turnaround plan, launched by Chairman and CEO Brian Niccol in 2024.
Starbucks’ third-quarter fiscal 2026 earnings, released in July, showed global comparable store sales up 7.9%, marking four consecutive quarters of comparable sales growth. North America comparable store sales rose 8.1%, driven by a 4.5% increase in comparable transactions and a 3.5% increase in average ticket. Consolidated net revenues fell 1% to $9.3 billion for the quarter, a decline the company attributed to its China transaction rather than underlying softness.
Non-GAAP operating margin expanded 430 basis points year over year to 14.4%, and non-GAAP earnings per share climbed 70% to $0.85. The company raised its full fiscal year 2026 guidance following the results, projecting global comparable store sales growth nearing 6% and non-GAAP earnings per share between $2.55 and $2.65.
Niccol tied the financial improvement directly to operational changes made under the turnaround plan. “Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day,” he said in the July earnings release. “Our third-quarter results are proof they do.”
What Comes Next
Grams closed his message to employees by tying the closures back to the company’s broader strategy of improving the customer and employee experience at remaining locations, rather than simply cutting costs. “We’re making this decision for a simple reason: we want every Starbucks coffeehouse to be a place customers love and partners are proud to work,” he wrote.
